Retirement Specialist Says 67% of Americans Worry About Outliving Their Money More Than Death

Many Americans say they are more afraid of running out of money than of dying, and the concern does not stop with those who have modest savings. Even people with millions in assets can feel the same pressure, and one figure in a retirement plan often determines whether that anxiety is warranted.

Financial planner Wes Moss begins his book The Retire Sooner Method with a simple question: “So what’s really keeping Americans up at night?” He points to Allianz Life research showing that 64% of Americans worry more about outliving their money than about death.

He adds that this kind of worry can affect sleep. Citing a survey from the American Academy of Sleep Medicine, Moss notes that 66% of respondents said they sometimes, often, or always lose sleep because of money concerns.

For people in their fifties and sixties, the downside is more than restless nights. Anxiety can push retirees to underspend. Moss warns that those who are overly cautious “may end up spending far less than you need to, making lifestyle sacrifices that simply aren’t necessary.”

Why Even Millionaires Worry About Money

Moss says the fear is often disconnected from actual wealth. In his survey, 51% of Americans with $100,000 to $499,999 in investable assets named running out of money as a top concern. The figure falls to 45% among those with $500,000 to $999,999.

Among people with $1 million to $2.9 million, 39% still listed it as a concern. Even in the group with $3 million or more, 24% said the same.

He describes that final group this way: “That’s like having a full tank of gas and worrying you won’t make it across town.” In his view, the fear comes from uncertainty about whether savings can truly support a desired retirement lifestyle.

Your Withdrawal Rate Determines Whether the Fear Makes Sense

One number largely decides whether the concern is justified: the annual withdrawal rate. Moss includes a table in his book, based on Capital Investment Advisors research and Bloomberg data, that shows the odds of a portfolio lasting 30 years after inflation.

With a $1 million portfolio and a 4% initial withdrawal rate, the retiree would take out $40,000 in the first year, with withdrawals rising each year with inflation.

Using a portfolio mix of 60% stocks and 40% bonds, that strategy lasted the full 30 years in every historical scenario reviewed. In that case, there would be no historical reason for alarm.

When the withdrawal rate rises to 5%, the success rate drops to 83%. At 6%, it falls to 67%. At that point, the fear lines up more closely with the math.

That is why Moss calls the 4%-plus guideline “the biggest antidote to running out of money.” He treats it as a flexible range, suggesting that retirees may take around 5% in stronger market years and less than 4% in weaker ones, while relying on cash and bonds.

Moss is managing partner and chief investment strategist at Capital Investment Advisors, a fee-only SEC Registered Investment Adviser with more than $8.1 billion in assets under management.

He also answers listener questions at wesmoss.com/ask and explains the framework in The Retire Sooner Method.

Four Signs You May Be in the Money Green Zone

Moss says four measures together point to what he calls the Money Green Zone:

1. A $1 million nest egg. At least $1 million in liquid investable assets, such as cash, CDs, brokerage accounts, and IRAs, excluding home equity, according to The Retire Sooner Method (Greenleaf Book Group).
2. Multiple income sources. Combined income of $100,000 or more from sources such as Social Security, pensions, and portfolio withdrawals, according to The Retire Sooner Method (Greenleaf Book Group).
3. A mortgage payoff within nine years. Paying off the mortgage in nine years or less removes the largest fixed monthly bill, according to The Retire Sooner Method (Greenleaf Book Group).
4. A sustainable withdrawal rate. The 4%-plus rule helps turn the first three goals into dependable annual income, according to The Retire Sooner Method (Greenleaf Book Group).

Practical Steps to Take Before the Next Sleepless Night

1. Count liquid assets. Make a list of every account you could access within days, then multiply the total by 4% to estimate a starting annual withdrawal.
2. Estimate other income. Check your Social Security benefit at SSA.gov and add pension income. Compare the total with the $100,000 target and your actual spending.
3. Review the mortgage timeline. If paying it off is still more than nine years away, adding $200 to $500 a month toward principal can shorten the loan by years.
4. Put the plan in writing. Record your withdrawal rate, asset allocation, and cash reserve so you have a clear framework to follow during market declines.

Moss argues that the fear can be managed. His research suggests unhappy retirees are twice as likely as happy retirees to worry about outliving their savings. A sustainable withdrawal plan and written rules, he says, can help retirees stay grounded when markets turn volatile.